Freshways announce a 13-day backdated price cut and delayed payment terms

In a letter dated 11th April, the managing director of Freshways, Bali Nijjar, notified suppliers of changes backdated to 29th March, meaning a minimum 13 days retrospective notice.

The changes included producers A price to be restricted to 60% of their current A volume/quota and from 29th March this will be paid at a liquid standard litre price of 24ppl (www.milkprices.com)

For milk delivered in March the Freshways payment terms have been extended with payment of 50% of the money owed delayed until 30th April and the remaining 50% will not be paid until 15th May.

The price mechanism, if any, for the remaining 40% is unknown and appears to be at the discretion of Freshways.

Like Medina suppliers (see above), the deferred payment terms will be a major worry to all.